Education
About Us
Working with TipRanks
Follow Us
First Advantage (FA)
NASDAQ:FA
Earnings Data
Report Date
May 13, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.21Last Year’s EPS
0.17Same Quarter Last Year
Moderate Buy
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial momentum — a record Q4 and best year in 2025, robust go-to-market execution (17% upsell/new logo growth in Q4), meaningful synergy progress and materially improved cash flow. Management is confident, initiating debt prepayments and a $100M buyback while guiding to continued revenue and EPS growth in 2026. Headwinds include slightly negative base revenue, margin dilution from higher pass-through fees in newer wins, elevated leverage (4.0x) and some vertical-specific pressures, plus timing risk as management balances synergy capture with incremental growth investments. On balance, the positive achievements, growth drivers and capital actions substantially outweigh the manageable challenges.Company Guidance
Record Q4 and Strong FY2025 Performance
Company reported its best quarter ever: Q4 pro forma revenue growth of 12% with Q4 revenues of $420 million. Full-year revenue around $1.57 billion with adjusted EBITDA of $441 million; pro forma adjusted EBITDA growth of 11% and full-year adjusted diluted EPS growth of 27%. Q4 adjusted diluted EPS rose 67% year-over-year.
Exceptional Go-to-Market Momentum
Combined new logo, upsell and cross-sell grew 17% in Q4 (highest in recent history). Enterprise bookings: 17 in Q4 and 66 in 2025; total enterprise new business (new logos + upsell/cross-sell) up ~24% year-over-year and average deal size increasing, driving higher package density.
Successful Sterling Integration and Synergy Progress
Completed core integration activities for the Sterling acquisition; actioned $55 million of run-rate synergies as of year-end, with $8 million incremental realized in Q4 and $38 million incremental realized during 2025. Targeting $65–$80 million of synergies by end of 2026.
Strong Cash Flow and Proactive Capital Allocation
Adjusted operating cash flow of $232 million in 2025, up $67 million (41%) year-over-year. Cash balance $240 million at year-end. Voluntary debt prepayment of $25 million announced (bringing total debt repayments since close to $95.5 million) and a new $100 million share repurchase authorization.
Scale of Data and Fulfillment Assets
Processed over 200 million screens across 200+ countries for 80,000+ customers. Proprietary data asset milestone of >1 billion records (up >10% YoY); national criminal record file >900 million U.S. records and a verified database of ~135 million work/education records. Top-100 customer average tenure 13+ years; gross retention ~96% for year and 97% in H2.
AI Adoption Driving Efficiency and Product Differentiation
AI embedded across products and operations: applicant portal reduced call center contact rates by ~50%, SmartHub intelligent router deployed, AI-enabled criminal records workflows and internal engineering productivity gains. AI is contributing to wins (SmartHub and digital identity cited in RFPs/wins).
Positive 2026 Outlook and Financial Guidance
2026 guidance: revenue $1.625–$1.7 billion (≈6% YoY at midpoint), adjusted EBITDA $460–$485 million, adjusted diluted EPS $1.25, implied 2-year adjusted diluted EPS CAGR of ~20% from 2024 to 2026 midpoint. Free cash flow guidance $160–$190 million and expected full-year margin expansion (~40 bps at midpoint).
FA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 26, 2026 | $9.52 | $11.69 | +22.79% |
Nov 06, 2025 | $12.93 | $13.80 | +6.73% |
Aug 07, 2025 | $16.21 | $17.50 | +7.96% |
May 08, 2025 | $14.97 | $17.83 | +19.10% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does First Advantage (FA) report earnings?
First Advantage (FA) is schdueled to report earning on May 13, 2026, Before Open (Confirmed).
What is First Advantage (FA) earnings time?
First Advantage (FA) earnings time is at May 13, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FA EPS forecast?
FA EPS forecast for the fiscal quarter 2026 (Q1) is 0.21.